P.R. Laws tit. 22, § 153
(a) In the event that there shall be a default in the payment of the principal of, or interest on, any of the bonds issued hereunder (which defaulted bonds are hereinafter referred to in this section as the bonds) after the same shall become due, whether it be a default in the payment of principal or interest or both, and such default shall continue for a period of thirty (30) days, or in the event that the Authority shall default in any agreement made with the holders of the bonds, any holder or holders of the bonds (subject to any contractual limitation as to a specific percentage of such holders) or trustee therefor, shall have the right to apply to the part of the Court of First Instance where the main office of the Authority is located or any other court of competent jurisdiction in Puerto Rico, in an appropriate legal proceeding, for the appointment of a receiver of the property or part thereof, the income or revenue of which is pledged to the payment of the bonds so in default (which property or properties are referred to in this section as the property). Upon such application the court may appoint, but if the application is made by the holders of twenty-five (25) per centum or more in principal amount of such bonds then outstanding, or by any trustee for holders of bonds in such principal amount, shall appoint a receiver of said property.
(b) The receiver so appointed shall forthwith, directly or by his agents and attorneys, take possession of the said property of each and every part thereof, and may exclude the Authority, its board, officers, agents and employees, and all persons claiming under them, wholly therefrom and shall have, hold, use, operate, manage and control the same and each and every part thereof, and, in the name of the Authority or otherwise, as the receiver may deem best, shall exercise all the rights and powers of the Authority with respect to the said property as the Authority itself might do and he will take into account the public interest and the public service character of the Authority. Such receiver shall maintain, restore, insure, and keep insured, such property and from time to time shall make all such necessary or proper repairs as such receiver may deem expedient, together with all such replacements of the property and such extensions thereto as may be necessary to maintain normal service, and shall establish, pursuant to the provisions of §§ 141—161 of this title, and shall levy, maintain, and collect, such rates, fees, rentals and other charges in connection with the said property as such receiver may deem necessary, proper and reasonable, and shall collect and receive all income and revenues and deposit the same in a separate account and apply the income and revenues so collected and received in such manner as the court shall direct.
(c) Whenever all that is due upon the bonds, and interest thereon, shall have been paid or deposited as provided therein, and all defaults in consequence of which a receiver may be appointed shall have been cured and made good, the court shall, after notice and public hearing (if the court shall deem the same reasonable and proper) direct the receiver to surrender possession of said property to the Authority, the same rights of the holders of the bonds to obtain the appointment of a receiver to exist upon any subsequent default as hereinabove provided.
(d) Such receiver shall act, in the performance of the powers hereinabove conferred upon him, under the direction and supervision of the court and shall at all times be subject to the orders and decrees of the court and may be removed thereby. Nothing herein contained shall limit or restrict the jurisdiction of the court to enter such other and further orders and decrees as such court may deem necessary or appropriate for the exercise by the receiver of any functions set forth in §§ 141—161 of this title.
(e) Notwithstanding anything in this section to the contrary, such receiver shall have no power to sell, assign, mortgage or otherwise dispose of any assets of whatever kind or character belonging to the Authority and useful for its corporate purposes, and the court shall not have jurisdiction to enter any order or decree requiring or permitting said receiver to sell, mortgage or otherwise dispose of any part of such assets.
History —May 1, 1945, No. 40, p. 138, § 14, renumbered as § 13 and amended on May 3, 1949, No. 163, § 1.